Title Financial Feasibility Analysis for the Development of Urban Telecommunication Facility Purpose Site
Authors Park, Kyungyong ; Jeong, Moonoh ; Lee, Sangyoub
DOI http://dx.doi.org/10.6106/KJCEM.2015.16.5.031
Page pp.31-41
ISSN 2005-6095
Keywords Telecommunication facility purpose site ; financial feasibility ; NPV ; IRR ; stochastic analysis ; simulation
Abstract The telecommunication industry has been considered as a national fundamental infrastructure. However, due to the rapid evolution of technology and the change of industry market conditions, the telecommunication infrastructure needs no more huge space for facility and it leads its use to the mixed-use development based on private investment. This study intends to examine the financial feasibility of the development project for the optimal alternative use of telecommunication facility purpose site as a case study based on two types: contributed acceptance and multi-level designation. The NPA and IRR has been analyzed by the simulation of stochastic variables including rent price and its variation rate, vacancy rate, construction cost, capitalization rate and discount rate. The research finding indicates that the two types of development are satisfied with the financial feasibility and it is noteworthy that the rent price turns out to be the most critical factor for the project. Accordingly, it is expected that these research finding can be applied for providing the solid cases of financial feasibility analysis for the development project in limited use of telecommunication facility purpose site.